About the Author
The Guide to Mexico for Business is written and edited by the International Trade and Publications Departments of American Chamber of Commerce of Mexico in Mexico City. The Guide is unique in that over 60 local business people contributed their expertise to its development.
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CHAPTER ONE - UNDERSTANDING CONTEMPORARY MEXICO, (Introducion)
Fundamental change at the domestic level, together with Mexico's increasing international participation, are leading the country into challenging and potentially uncertain territory. However, the overall outlook for Mexico in the new millennium is positive, despite the risks. The political process during the year 2000 will be of great importance if Mexico is to continue down the road of economic stability or suffer another down-turn. Basic indicators suggest that an economic crisis is unlikely. Indeed, as Mexico works toward fuller democracy an maintains its overall macroeconomic health, investment drawbacks should be outweighed by the country's strong promise.
As the long-ruling Institutional Revolutionary Party's power slowly erodes, the Mexican political system is embracing a more open democratic process. Nonetheless, there remains a certain degree of political instability, and large sectors of society have been alienated. The first section of this chapter analyzes - from its roots to its future prospects - this progressive, albeit uncertain, transition. Essential information on government structure and individual party platforms provides a useful primer for understanding the evolution of Mexican politics.
The chapter's second article discusses recent and projected key economic initiatives in Mexico. Although export growth has slowed, the country's macroeconomic efforts are on track to ensure future growth and reduce political instability. Granted there are problems: Significant commercial ties with the United States and fluctuatin oil prices still imply a certain amount of vulnerability. Futhermore, a weak banking sector remains more or less incapable of financing small and medium-sized businesses. On the whole, however, the policy of increased foreign investment set into place almost two decades ago shows no signs of letting up, thanks in particular to the economic integration facilitated by Nafta
Finally, the chapter's third section describes how businesses in Mexico are positioned and provides forecasts for the year 2000; judging by the better-than-expected performance of the economy and company sales in 1999, the outlook for 2000 is bright. Moreover, the article shows how increasingly diversified international trading partners will create new opportunities for export-orientated companies in Mexico, typically focused on the United States and Latin America.
Together, these three articles offer a snapshot of not only current conditions, but also likely developments, in the rapidly transforming arenas of Mexican politics, economics, and business.
